Which Statement Concerning the Net Present Value (NPV)of an Investment

Which statement concerning the net present value (NPV) of an investment or a financing project is correct?

A) A financing project should be accepted if,and only if,the NPV is exactly equal to zero.
B) An investment project should be accepted only if the NPV is equal to the initial cash flow.
C) Any type of project should be accepted if the NPV is positive and rejected if it is negative.
D) Any type of project with greater total cash inflows than total cash outflows,should always be accepted.
E) An investment project that has positive cash flows for every time period after the initial investment should be accepted.

Correct Answer:

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